The Financial Conduct Authority (FCA) has announced plans to encourage asset managers to tokenise their funds on the blockchain, stating that tokenisation has the potential to drive fundamental changes in asset management. A pivotal move and testament to the quiet revolution already unfolding in financial markets.
The tokenisation of real-world assets is beginning to reshape how people access, invest in, and trade financial products. Beyond investment access, it also lays the groundwork for a new era of operational transformation across financial services.
MQube recently became the first fintech in Europe to tokenise mortgage debt on the blockchain, a milestone for both the mortgage and wider financial services industries. In essence, tokenisation converts tangible or intangible assets, such as property, art, or now mortgage debt, into digital tokens recorded on a secure and immutable blockchain ledger.
Why does this matter for financial services?
In highly regulated sectors, tokenisation brings tangible benefits: improved transparency and data integrity, enhanced transaction security, immutable audit trails, operational efficiency, and faster settlement times. More importantly, it establishes the foundation for assets to be bought and sold natively on the blockchain.
The mortgage industry, in particular, is primed for this innovation. It remains constrained by siloed, legacy systems, from batch-based servicing platforms to opaque securitisation structures and fragmented data flows.
At MQube, we’re using blockchain technology to build an architecture that redefines the entire mortgage lifecycle, from origination and servicing to validation, capital matching, and securitisation.
This unified, programmable infrastructure enables regulated lenders, capital providers, servicers, and borrowers to operate securely on-chain, with compliance clarity and cryptographic assurance. The tokenisation of MPowered’s mortgage debt marks the first step on that journey.
Our architecture will allow institutions to collaborate on-chain while preserving compliance boundaries and proprietary logic, unlocking a new level of product flexibility. It has the potential to let lenders offer dynamic product terms, automate rate switches, and embed new servicing logic over time – without relying on static legacy systems. Lenders could lend their own capital or deploy funds on behalf of third parties, with direct access to servicing data and borrower information for originated products.
What we’re pioneering at MQube has never been done before, a blockchain-based infrastructure with the potential to completely rewire the mortgage ecosystem.
Mike Lear is chief information officer at MQube
